Renewable portfolio standards and cost-effective energy-efficiency investment

A. MAHONE, Chi Keung WOO, J. WILLIAMS, I. HOROWITZ

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19 Citations (Scopus)

Abstract

Renewable portfolio standards (RPSs) and mandates to invest in cost-effective energy efficiency (EE) are increasingly popular policy tools to combat climate change and dependence on fossil fuels. These supply-side and demand-side policies, however, are often uncoordinated. Using California as a case in point, this paper demonstrates that states could improve resource allocation if these two policies were coordinated by incorporating renewable-energy procurement cost into the cost-effectiveness determination for EE investment. In particular, if renewable energy is relatively expensive when compared to conventional energy, increasing the RPS target raises the cost-effective level of EE investment. Copyright © 2008 Elsevier Ltd. All rights reserved.
Original languageEnglish
Pages (from-to)774-777
JournalEnergy Policy
Volume37
Issue number3
DOIs
Publication statusPublished - Mar 2009

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energy efficiency
Energy efficiency
cost
Costs
Cost effectiveness
Fossil fuels
Climate change
Resource allocation
resource allocation
fossil fuel
energy
climate change
policy

Citation

Mahone, A., Woo, C. K., Williams, J., & Horowitz, I. (2009). Renewable portfolio standards and cost-effective energy-efficiency investment. Energy Policy, 37(3), 774-777. doi: 10.1016/j.enpol.2008.11.033

Keywords

  • RPS
  • Electricity
  • Energy efficiency